SwissBorg – A wealth management made in Switzerland

SwissBorg wants to create a wealth management solution made in Switzerland and entirely owned by its community members. Meritocracy (‘a society governed by people selected according to merit’) and Swarm Intelligence are at the heart of SwissBorg’s ecosystem ensuring that investment services will always be delivered in accordance with the community’s best interests. The combination of AI, swarm intelligence and smart contracts could enable new financial services.

Initially the project started in 2015 as a robot adviser but the actual SwissBorg Blockchain business model was defined in 2017. SwissBorg discovered the potential for smart contracts to deploy their philosophy and business model. SwissBorg believes the banking industry doesn’t look the way it should in the age of digitalization. They detest the current, monopolistic and slow banking system where change is discouraged. Besides that, professional wealth management services are only accessible by the elite.

Swarm Intelligence

Swarm Intelligence is the collective behavior of decentralized, self-organized systems. To give an example, one ant can’t determine the shortest path to food on its own. However, a colony can determine this much faster by using shared knowledge. The concept of swarm intelligence is basically combining knowledge to get superior knowledge. A colony of ants knows much more than just one ant on its own.

Token Use

The benefit of holding a CHSB token is that a token holder will own a negotiable security registered in the cooperative registry via the Smart contract System. If a CHSB holder wishes to become a member of the SwissBorg Cooperative and wants to be more involved in the cooperative governance, they can become a member of the cooperative. By holding this token you will be able to participate in the governance of SwissBorg and will be entitled to dividends in the future.

Major Competitors

According to SwissBorg, “The financial sector is quite dense, so we have many competitors. Nevertheless, having a slant on asset management like us, few have the level of products and the infrastructure we are deploying.”

A possible competitor may be Elpis, who offers crypto asset management. They use artificial intelligence to analyze the markets and execute trades. The goal of the project is to solely depend on artificial intelligence for trading our money to make profits.

AxionV is another competitor who uses advanced artificial intelligence trading methods to maximize investments. They see humans as slow and emotionally unstable, which is not a good characteristic for trading. AxionV wants to use proprietary algorithms to maximize your investments.

Both Elpis and AxionV are competitors, but not at the scale SwissBorg is thinking of. SwissBorg offers superior financial services tailored by and for the community.

Team Formation and Culture

Along the way, SwissBorg has picked up people with the same mindset who believe in the idea behind SwissBorg and who support the philosophy of the project. The team itself is highly diversified, with people from all over the world, being a mix of business and tech. According to SwissBorg, “being a blockchain company, decentralization is at the heart of our values and building a community is one of our first goals.”

The Challenge of SwissBorg

According to SwissBorg, the biggest challenge will be the public acceptance of a wealth management. Non-blockchain people will be very skeptical about the concept of community owned banks. Besides that, it won’t be easy to get an official banking license for this kind of model.

It’s also a big challenge to develop swarm intelligence capable of predicting the markets based on historical trades.

SwissBorg’s Roadmap

“In two years’ time we aim to have achieved a number of milestones like: several token indexes, a one off chain fund, one closed end fund, and our own crypto exchange. Over the five year time frame, several actively managed token indexes, one open architecture division, smart mandates, payment services and we will have obtained the banking license. Obtaining a banking license will be a huge step forward for the project if they succeed”, SwissBorg told us.

Pros

A bank that is owned by the community is an attractive idea and also that the community can decide on which financial services should be offered for managing their crypto assets. Traditional banks are slow and monopolistic. We are in the age of digitalization and yet on the other hand, banks are not yet changing at the speed we would like to see. I think this project can disrupt the banking sector if they are able to obtain an official banking license.

The concept of using swarm intelligence could enable them to become superior at investing. However, markets will remain hard to predict. SwissBorg uses a Swarm Analyzer to analyze proposed investment strategies. The Swarm Analyzer uses machine learning to provide more accurate and customized investment mandates. The implemented machine learning is based on big data and behavioral finances.

Cons

The idea of a wealth management solutionfor crypto assets itself will be very strange for non-blockchain people. A lot of time and effort will be required to convince people of the benefits and safety of SwissBorg. Another possible issue is that there is a chance that SwissBorg just won’t get their official banking license.

Security will be very important for SwissBorg. The credibility of a bank is crucial and can be demolished easily. SwissBorg will have to meet specific security standards to be able to get a banking license.

In Conclusion

SwissBorg is here to disrupt the banking industry with their wealth management solution. The idea of a community driven bank offering tailored financial services is very appealing. However, the adoption of this kind of bank will be a difficult hurdle to overcome. People will have many concerns about the security of the bank as everything is digital and runs on code, which eventually can be attacked or hacked.

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